After reporting second quarter earnings that missed estimates, General Motors (GM) shares tumbled more than 9% on Wednesday. Amid soaring new vehicle prices, GM, like many original equipment manufacturers (OEMs), continues to contend with the global chip shortage and heightened production costs. However, according to Autoblog* Editor-in-Chief Greg Migliore, GM’s growth outlook, should it ring true, may put the company in a good position.

“[CEO] Mary Barra again laid out an aggressive, I think, optimistic plan for growth,” Migliore told Yahoo Finance Live. “They're going to launch the GMC Hummer electric vehicle. This is a big-deal launch for them, it's the return of the Hummer brand as an electric model and that's going to happen I believe in October.”

Migliore joined Yahoo Finance Live to discuss GM’s recent earnings report, current challenges facing the company, as well as future developments which could contribute to its growth. 

Though GM’s earnings may not have lived up to analysts' expectations, the OEM raised its full-year guidance in light of its healthy margins on pickup trucks and booming auto demand, expecting adjusted pre-tax earnings between $11.5 billion and $13.5 billion, up from its previous outlook of between $10 billion and $11 billion.

“There was a strong demand for some of the pickup trucks and SUVs which are obviously quite lucrative,” Migliore said regarding GM’s past quarter. “And that allowed them to overcome things like inventory issues and the chip shortage.”

As for other vehicle rollouts for GM on the horizon, Migliore pointed to the Cadillac Lyriq, another EV which is slated to go up for sale beginning early 2022. GM is charging hard on the EV front, intending to invest $35 billion between 2020 and 2025 in EV and autonomous vehicle (AV) product development, exceeding its gas and diesel investment.

“So despite these challenges — recalls, the chip shortage, the pandemic — they’re going to weigh down basically every car company, and I think GM is better positioned than most to try some new things and grow in the second half of the year here,” Migliore said.

Story continuesPOLAND – 2021/04/26: In this photo illustration a General Motors logo seen displayed on a smartphone with stock market percentages in the background. (Photo Illustration by Omar Marques/SOPA Images/LightRocket via Getty Images)Headwinds facing GM

According to Migliore, the company aims to sell one million EVs by 2025. However, he cited challenges such as the recent Chevy Bolt EV recall, issued due to a potential battery fire risk, as being one of several headwinds facing GM in the near term.

GM must deal with its recall issues in addition to market conditions currently plaguing the entire auto industry.

“Like the Delta variant and like chip shortages, there are two very unpredictable things that could impact the business model and obviously, earnings,” Migliore added. “[GM has] a big third-quarter and fourth-quarter in front of them.”

He noted that there is still “a lot of uncertainty” within the space as GM heads into the fall and estimated that the chip shortage may drag on for at least another year,

“Now, GM has wide-ranging purchasing operation and they can get whatever they need,” Migliore added. “But with the chip stuff, we don't even know what we don't know.”

*Editor’s Note: Autoblog is owned and operated by Verizon Media, a subsidiary of Verizon Communications, which also owns Yahoo Finance.

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